If the equilibrium price of corn is $3 a bushel, and the government imposes a floor of $4 a bushel, the price of corn will ___
a. increase to $4
b. remain at $3
c. rise to about $3.50
d. be impossible to determine
Answer: A
If the equilibrium price of corn is $3 a bushel, and the government imposes a floor of $4 a bushel, the price of corn will ___
a. increase to $4
b. remain at $3
c. rise to about $3.50
d. be impossible to determine